CONTRACT manufacturer MFS Technology declared higher final and special dividends yesterday, despite turning in a lower net profit for the year ended Sept 30.

Net profit fell 19 per cent to $35.02 million for the year, from $43.09 million a year ago.

Turnover declined 12.2 per cent, from $432.25 million last year to $379.52 million.

This was mainly due to a sales fall in the display and imaging segment.

But a final dividend of 1.5 cents was declared - up from the 0.55 cent last year.

Also, a special cash dividend of 2.5 cents has been declared, compared with one cent last year.

Earnings per share declined from 6.6 cents a year ago to 5.4 cents.

Net asset value per ordinary share rose to 24.2 cents as at Sept 30 from 20.7 cents a year ago.

MFS, which specialises in making printed circuit components, said its flexible printed circuit (FPC) division continued to drive the group's sales.

The segment contributed 89.5 per cent of turnover with the printed circuit board (PCB) division comprising the balance.

FPC business turnover declined 14.5 per cent from $397.3 million to $339.6 million, mainly due to the decline in sales to the LCD display and imaging segment.

However, this was partially set off by a significant increase in demand in the personal communication and wireless portables division.

'Together with a lower turnover, the price pressure from a less favourable product mix and increased exposure to the lower-margin segment of our business in the second half of the financial year resulted in a 21.2 per cent decline in gross profits,' MFS said.

The PCB division's performance moderately improved with turnover growing about 14.3 per cent, from $34.9million to $39.9 million.

MFS said current-year prospects 'will be encouraging and the performance of our group in the first quarter of the 2006 financial year will improve'.